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Home > News > Recycling

(Opinion) Recycled plastics: Opportunities, challenges, and insights

Source：Adslae Plastics Network Date ：2025-04-03 Editor ：Li Bin
Copyright： This article was originally written/edited by Adsale Plastics Network (AdsaleCPRJ.com), republishing and excerpting are not allowed without permission. For any copyright infringement, we will pursue legal liability in accordance with the law.

Recently, there has been intense discussion about integrating artificial intelligence (AI) into various industries, including the recycled plastics sector. We live in an era where information is exchanged and integrated at an unprecedented pace, making it increasingly challenging to sustain business growth based solely on information. The future development of the sector requires deep and thoughtful contemplation.

 

Responsibility of sustainable development

 

The recycled plastics sector holds a unique position in the plastics industry. On one hand, it shoulders the responsibility of guiding the industry toward sustainable development by recycling and reusing plastics, thereby reducing waste and environmental pollution. On the other hand, it plays a crucial role in the supply chain’s carbon reduction efforts. Compared to virgin plastics, using recycled plastics can reduce carbon emissions by 40% to 60%.


VEOLIA_380.jpg 


Recycled plastics are an important driver of carbon reduction in the plastics supply chain. (Image source: Veolia)

 

Exploration of carbon reduction benefits

 

Recycled plastics account for about 10% of global plastic consumption. However, in the plastics industry, an oversupply of fossil-based virgin plastics has led to declining market prices, indirectly putting pressure on the recycled plastics sector.

 

The second part of the fifth session of the United Nations Intergovernmental Negotiating Committee (INC-5.2) will be held in Switzerland in August this year. This meeting is highly anticipated, with hopes that governments worldwide will introduce policies to promote the use of recycled plastics.

 

Internationally, food-grade recycled plastics are already widely used, but their adoption in China remains limited. However, the industry sees great investment potential in this area.

 

As a crucial means of carbon reduction in the plastics supply chain, recycled plastics are increasingly being standardized by national regulations. The market must further explore the value of recycled plastics in terms of carbon reduction benefits. Future developments should align with voluntary carbon market, such as establishing methodologies for the China Certified Emission Reduction (CCER) Program to boost supply and demand.

 

At the same time, the recycled plastics sector faces risks of overcapacity. Taking recycled PET as an example, many new projects have been launched. The increase in recycling capacity has led to a surge in demand for PET bottle flakes. However, the market has struggled to supply enough used bottles, resulting in high flake prices and significantly reduced profits for processing companies.


inc-5_480.jpg

The INC-5.2 meeting is scheduled to be held in Switzerland this August. (Image source: United Nations)

 

Consensus on use of recycled plastics

 

The good news is that with effective consumer education, brands and application markets remain highly interested in recycled plastics. There is now a general consensus on the use of recycled plastics.

 

For example, the automotive industry has become a major user of recycled plastics, particularly for export vehicle models. The automotive supply chain has developed comprehensive solutions for using recycled plastics, and price acceptance has improved compared to previous years.


SK Chemicals_480.jpg

Recycled plastics are increasingly used in the automotive industry. (Image source: SK Chemicals)

 

In the packaging industry, many brands have experimented with incorporating recycled plastics into both rigid and flexible packaging. Products using recycled plastics are already widely available in the market.


dow_480.jpg

The packaging industry has widely adopted recycled plastics. (Image source: Dow Chemical)

 

The textile industry has long been a major consumer of recycled plastics and related downstream products, such as recycled fibers. Recycled polyester and polypropylene fibers have become materials of choice for many brands.


ZHEJIANG JIAREN _1_400.jpg

Recycled polyester has become a standard material for textile brands. (Image source: Jiaren New Materials)

 

To further develop the recycled plastics sector, suppliers must closely align with the needs of brand supply chain, offering reliable quality, stable production capacity, and traceable products. Specifically, companies should focus on customer requirements, product portfolios, and collaborative innovation.

 

Policy support and corporate social responsibility

 

Due to varying national regulations, demand for recycled plastics mainly comes from international customers and leading domestic brands that prioritize ESG and sustainability. In addition to commitments from global brands, we have recently observed that top domestic brands are also actively adopting recycled plastics, creating new growth opportunities for the industry.

 

Future recycled plastic products will need to be more tailored to specific customer needs, increasing the demand for "custom formulations". This means recycled plastics will be integrated as raw materials into ready-to-use product solutions. As a result, recycling companies must go beyond basic processes like crushing, washing, and pelletizing. They must also understand formulation development and downstream applications to provide higher-quality customer service.

 

Strengthening collaboration across supply chain

 

As the supply chain continues to evolve, closer collaboration between upstream and downstream players is necessary to drive technological innovation. Upstream efforts should translate into benefits for downstream users, collectively elevating the recycled plastics sector to a higher level.

 

Another critical factor in aligning with supply chain is traceability. Customers need clear visibility into where and how waste plastics are collected, ensuring quality control and reducing supply chain risks. This will make the supply and production of recycled plastics more sustainable.

 

In terms of market size, the recycled plastics sector remains a small branch of the larger plastics industry. However, this sector is increasingly recognized for its value. With continuous efforts and innovation from industry players, the sector is poised to overcome challenges and move toward a brighter future.

 

Author: Li Bin (Professor at the Center for Advanced Low-dimension Materials, Donghua University)

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Source：Adslae Plastics Network Date ：2025-04-03 Editor ：Li Bin
Copyright： This article was originally written/edited by Adsale Plastics Network (AdsaleCPRJ.com), republishing and excerpting are not allowed without permission. For any copyright infringement, we will pursue legal liability in accordance with the law.

Recently, there has been intense discussion about integrating artificial intelligence (AI) into various industries, including the recycled plastics sector. We live in an era where information is exchanged and integrated at an unprecedented pace, making it increasingly challenging to sustain business growth based solely on information. The future development of the sector requires deep and thoughtful contemplation.

 

Responsibility of sustainable development

 

The recycled plastics sector holds a unique position in the plastics industry. On one hand, it shoulders the responsibility of guiding the industry toward sustainable development by recycling and reusing plastics, thereby reducing waste and environmental pollution. On the other hand, it plays a crucial role in the supply chain’s carbon reduction efforts. Compared to virgin plastics, using recycled plastics can reduce carbon emissions by 40% to 60%.


VEOLIA_380.jpg 


Recycled plastics are an important driver of carbon reduction in the plastics supply chain. (Image source: Veolia)

 

Exploration of carbon reduction benefits

 

Recycled plastics account for about 10% of global plastic consumption. However, in the plastics industry, an oversupply of fossil-based virgin plastics has led to declining market prices, indirectly putting pressure on the recycled plastics sector.

 

The second part of the fifth session of the United Nations Intergovernmental Negotiating Committee (INC-5.2) will be held in Switzerland in August this year. This meeting is highly anticipated, with hopes that governments worldwide will introduce policies to promote the use of recycled plastics.

 

Internationally, food-grade recycled plastics are already widely used, but their adoption in China remains limited. However, the industry sees great investment potential in this area.

 

As a crucial means of carbon reduction in the plastics supply chain, recycled plastics are increasingly being standardized by national regulations. The market must further explore the value of recycled plastics in terms of carbon reduction benefits. Future developments should align with voluntary carbon market, such as establishing methodologies for the China Certified Emission Reduction (CCER) Program to boost supply and demand.

 

At the same time, the recycled plastics sector faces risks of overcapacity. Taking recycled PET as an example, many new projects have been launched. The increase in recycling capacity has led to a surge in demand for PET bottle flakes. However, the market has struggled to supply enough used bottles, resulting in high flake prices and significantly reduced profits for processing companies.


inc-5_480.jpg

The INC-5.2 meeting is scheduled to be held in Switzerland this August. (Image source: United Nations)

 

Consensus on use of recycled plastics

 

The good news is that with effective consumer education, brands and application markets remain highly interested in recycled plastics. There is now a general consensus on the use of recycled plastics.

 

For example, the automotive industry has become a major user of recycled plastics, particularly for export vehicle models. The automotive supply chain has developed comprehensive solutions for using recycled plastics, and price acceptance has improved compared to previous years.


SK Chemicals_480.jpg

Recycled plastics are increasingly used in the automotive industry. (Image source: SK Chemicals)

 

In the packaging industry, many brands have experimented with incorporating recycled plastics into both rigid and flexible packaging. Products using recycled plastics are already widely available in the market.


dow_480.jpg

The packaging industry has widely adopted recycled plastics. (Image source: Dow Chemical)

 

The textile industry has long been a major consumer of recycled plastics and related downstream products, such as recycled fibers. Recycled polyester and polypropylene fibers have become materials of choice for many brands.


ZHEJIANG JIAREN _1_400.jpg

Recycled polyester has become a standard material for textile brands. (Image source: Jiaren New Materials)

 

To further develop the recycled plastics sector, suppliers must closely align with the needs of brand supply chain, offering reliable quality, stable production capacity, and traceable products. Specifically, companies should focus on customer requirements, product portfolios, and collaborative innovation.

 

Policy support and corporate social responsibility

 

Due to varying national regulations, demand for recycled plastics mainly comes from international customers and leading domestic brands that prioritize ESG and sustainability. In addition to commitments from global brands, we have recently observed that top domestic brands are also actively adopting recycled plastics, creating new growth opportunities for the industry.

 

Future recycled plastic products will need to be more tailored to specific customer needs, increasing the demand for "custom formulations". This means recycled plastics will be integrated as raw materials into ready-to-use product solutions. As a result, recycling companies must go beyond basic processes like crushing, washing, and pelletizing. They must also understand formulation development and downstream applications to provide higher-quality customer service.

 

Strengthening collaboration across supply chain

 

As the supply chain continues to evolve, closer collaboration between upstream and downstream players is necessary to drive technological innovation. Upstream efforts should translate into benefits for downstream users, collectively elevating the recycled plastics sector to a higher level.

 

Another critical factor in aligning with supply chain is traceability. Customers need clear visibility into where and how waste plastics are collected, ensuring quality control and reducing supply chain risks. This will make the supply and production of recycled plastics more sustainable.

 

In terms of market size, the recycled plastics sector remains a small branch of the larger plastics industry. However, this sector is increasingly recognized for its value. With continuous efforts and innovation from industry players, the sector is poised to overcome challenges and move toward a brighter future.

 

Author: Li Bin (Professor at the Center for Advanced Low-dimension Materials, Donghua University)

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(Opinion) Recycled plastics: Opportunities, challenges, and insights

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